California LLC Cost in 2026 (Complete Breakdown)
Every fee a California LLC pays — first-year total, annual recurring, and the optional costs that are actually worth paying.
Reviewed by the NerdMoney editors — 8+ years covering small-business formation, tax, and compliance across all 50 states.
A California LLC costs $890 in year one at minimum: $70 to file the Articles of Organization, $20 for the Statement of Information, and $800 for the annual franchise tax. Every year after, plan on $800 minimum ($810 in years the SOI is due). Optional add-ons — registered agent service, operating agreement help, EIN filing — can push it to $1,000–$1,200 if you use a filing service. Below: every line item. Want it all handled in one flow? We use Tailor Brands.
| Item | Cost | Frequency |
|---|---|---|
| Articles of Organization (LLC-1) | $70 | Once |
| Statement of Information (LLC-12) | $20 | Every 2 years |
| Annual franchise tax | $800 | Every year |
| LLC fee (if >$250K gross) | $900–$11,790 | Every year |
| EIN | $0 (IRS) | Once |
| Registered agent service | $0–$125 | Per year |
| Operating agreement (DIY) | $0 | Once |
| Filing service (optional) | $0–$300 | Once |
| Business bank account | $0–$15/mo | Ongoing |
| Name reservation (optional) | $10 | 60 days |
| Certified copy (optional) | $5–$30 | Once |
First-year cost: $890 minimum
The bare-minimum DIY route in year 1:
- Articles of Organization: $70
- Statement of Information (due within 90 days): $20
- Annual franchise tax: $800
- EIN: free from the IRS
- Operating agreement: free if you DIY
Total year 1: $890.
Annual recurring cost: $800 (or $810 in SOI years)
After year 1, the only required ongoing cost is the $800 franchise tax. The Statement of Information is due every other year and adds $20 in those years. So your recurring cost cycles between $800 and $810.
The $800 — non-negotiable
This is the big one. Every CA LLC owes $800/year regardless of revenue. Full $800 fee breakdown →
Optional costs worth paying
- Registered agent service ($50–$125/yr): Worth it if you don't want your home address on public record.
- Filing service ($0–$300): Worth it for first-timers — services like Tailor Brands handle Articles, EIN, registered agent, and operating agreement in one flow.
- Business bank account ($0–$15/mo): Free options exist (Mercury, Relay, Bluevine). Critical for maintaining liability protection.
Optional costs you can skip
- Name reservation ($10): Pointless if you're filing the same week.
- Certified copy ($5–$30): Some banks ask for it. Wait until you actually need one.
- Apostille / certificate of good standing: Only needed if you're using your CA LLC abroad or for some loans.
What it costs if you make over $250K
Above $250K in gross receipts (not profit), you also owe the LLC fee: $900 at $250K, $2,500 at $500K, $6,000 at $1M, $11,790 at $5M+. Stacked on top of the $800.
DIY vs filing service: which is cheaper?
Pure DIY is cheapest ($890 year 1). A filing service costs $0–$300 more upfront but typically includes the EIN, operating agreement, and a year of registered agent service — which would cost more if you bought separately. If you value time, the filing service is usually a wash or cheaper.
Sources & further reading
- California Secretary of State — Business Filings — sos.ca.gov
- Franchise Tax Board — LLC tax information — ftb.ca.gov
- IRS — Apply for an EIN online — irs.gov
FAQ
How much does an LLC cost in California in 2026?
$890 in year one at minimum: $70 filing + $20 Statement of Information + $800 annual franchise tax. Recurring cost is $800/year ($810 in SOI years).
Why is the California LLC fee so expensive?
California charges an $800 minimum franchise tax to every LLC for the privilege of doing business in the state. It's the highest minimum in the U.S. and applies regardless of revenue.
Is there a cheaper way to form an LLC in California?
No legal way to avoid the $800 franchise tax. The cheapest path is DIY filing for $70 + $20 SOI + $800 — totaling $890. Filing services add convenience for ~$0–$300.
How much does an LLC cost per year in California?
$800 in non-SOI years and $810 in years the Statement of Information is due. Plus registered agent service if you use one ($50–$125).
Do I have to pay $800 the first year?
Yes. The first-year exemption that existed for LLCs formed 2021–2023 has expired. Every CA LLC owes $800 in year one, due by the 15th day of the 4th month after formation.